Have you ever wondered about starting an e-commerce business?
What would life be like if you could make that work? If you didn’t have to put up with the mundane 9 to 5 routine.
Well, believe it or not, starting an e-commerce business is not as difficult as you may think, and in this blog post, I have broken it down into 5 simple steps.
Starting An E-Commerce Business Step 1: Choosing Your Product
This step, is without doubt the most difficult step in the whole process.
Why? Because it’s so fickle!
Trends change. What could be an amazing product one day, could be a flop the next, which is why it’s so important to research your product thoroughly before buying it in bulk.
One tool you can use to help you do this is EBay completed listings tool.
This simple to use tool will allow you to see what products are and are not selling on EBay.
It’s very simple to use.
First log into your EBay account, and search the potential product you would like to sell.
Scroll down and on the left hand side, you will see an option that says ‘Show Only’. Select the ‘Completed Listings’ options under this menu.
Once you have done this, you will find the page refreshes, and some of the items will appear green and other’s black.
These are the listings that have ended over the past few days.
The green items are the ones that have sold, and the black are the ones that have not.
From this, you can begin to get an idea of how many of these items sell per day (you want to be aiming for a minimum of 40% of the items being sold) and also, how much they are selling for.
Make a list of four or five potential items that have a minimum of 40% sold rate, and their average price.
Starting An E-Commerce Business Step 2: Sourcing Products
Sourcing products for sale, is actually very easy.
However, sourcing products for the right price is much more difficult.
There are many ways to source products at wholesale prices.
Here are a couple of my suggestions
Firstly, browse selling platforms.
In recent years, Amazon and EBay have become increasingly competitive. Meaning you can often pick up a steal on these platforms.
A technique I like to utilise is to look for price differences between Amazon and EBay and use the other as a supplier.
This remote control toy on EBay is selling for £28.99
However, if we head on over to Amazon, the same toy is being sold for £44.99. A massive £16 difference.
So, as you can see, potentially, we could purchase products from EBay to sell on Amazon, and vice versa.
You can also opt to purchase from China.
One of my favourite resources for this, is AliExpress.
Aliexpress is a bit like EBay for wholesalers.
You can pay via Paypal and your money is protected should there be an issue with your order, so it’s worth spending time on there looking to see if you can find your product cheaply.
Remember, if you are intending to order from China, always order a sample!
Starting An E-Commerce Business Step 3- Do The Math
Finding a product with a £16 gross profit is all well and good, but will it still be profitable after you have factored in all of your costs?
You need to make sure you do your sums before placing an order with a supplier.
Sometimes, by the time you have paid fees, and paid shipping both from the supplier to you and then you to the customer, much of your profit is eaten up, and you are left with a very small slice of the product cost.
Make sure you know your fees for your platform, and you have accounted for all of your costs before you start ordering.
This way, you will know exactly what your profit is on each item, and won’t be in for any nasty surprises.
It’s handy to set yourself a limit, for example, I would like to earn a minimum of £X on each product I sell.
This way you can gauge your product sourcing around this.
Some fees you need to think about:
Shipping From Supplier
Duty From Supplier (If ordering from abroad)
Platform Fees (Amazon, EBay, Website)
Payment Processor Fees (Paypal, Stripe etc)
Shipping To Customer
Starting An E-Commerce Business Step 4- List Your Products
You are now ready to start and list your products.
There are many platforms for you to do this, but choose one first and focus on that.
Some potential platforms include:
Your Own Website (You can set this up with a site like WIX)
Choose a platform that you use yourself to begin with, because you will be at least familiar with the process buyers go through and this is helpful when creating your listings.
Think about what you feel attracts you to an item, and use that within your listing.
For example, do you only buy items that include free shipping? Do you only buy items that have a ‘UK Seller’ badge or a ‘Fast Delivery’.
Don’t feel bad if you don’t make a sale straight away.
It takes time for your listings to begin to gain exposure, and when you start to gain positive feedback, the platforms like Amazon and EBay will reward you with further exposure.
Remember, create social media accounts for your new business, and promote your product links on there.
It’s a great way to advertise your products for free and interact with potential customers.
Starting An E-commerce Business Step 5- Scale It Up!
Once you have mastered one platform, it’s time to scale up to other platforms, and when you have exhausted all platforms, you can then scale by adding further product lines.
Your income with e-commerce is only limited by your own work ethic.
So take action now!
The e-commerce model is one of the easiest and fastest ways to make money online- and it works!
Here is a screenshot from my Amazon account.
This is one month’s income, from one platform.
(I sell across multiple platforms)
£9177. (That converted to almost 17,000 USD that month!)
Now, imagine, what you could do with that extra money, and go out and make it happen!
I hope this has been useful guys, please feel free to head on over to the Tycoon Factory Facebook page and ask any questions you may have.